If you think about it, almost everyone owns a vehicle. Unless you live in the middle of a large city, there is probably at least one in every family.
With all of these vehicles around, there is always going to be a need for some type of service – whether it is mechanical or cosmetic. That means that if you are looking to start up your own business, the automotive sector is an ever expanding market.
Now, it does not matter if your business offers vehicle servicing, auto body repair or detailing; the simple fact is that a client’s vehicle is on your premises and it needs to be insured properly.
But I’m not driving my customer’s vehicles. They leave them in my parking lot and I do all of the work outside.
While that is a fair point, you still need to have the proper insurance to protect yourself and your customer’s vehicle. This type of insurance policy is called Garage Auto and it will very likely be required in addition to your business insurance.
Garage Auto insurance is designed for basically any type of business that involves vehicles: Auto body repair, transmission and muffler shops, car dealerships, valet and non-valet parking garages, etc. This policy provides protection for liability and physical damage to vehicles that belong to the business and for customer vehicles that are in your care. Since auto insurance is required by law in Ontario and the vehicle owner’s insurance will not cover you or your employees, a garage auto policy is required by law.
The premium for a garage auto policy is based on several factors: The number of full and part time employees and the associated payroll, whether or not the business has dealer licence plates, if there are any towing operations, the annual revenue of the business, and driving records.
